IRA and RMD

[pat o]

Turbo Tax is charging us a penalty after the latest update, and neither of us are required to take RMD this year. Is there a problem with the last update?

[DanaB27]

If you were not required to take any RMDs for 2024 then you can tell TurboTax at the end of the retirement interview that you didn't fail to withdraw your RMDs:

1. Click on the "Search" on the top right and type “1099-R” 
2. Click on “Jump to 1099-R”
3.  On the "Review your 1099-R info" screen click "Continue"
4. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD"

[pat o]

When I went into the program, I don.t find a 1099-r review page that has anything to do with RMD. When the new update came on today, it added an $800 penalty that hadn’t been there before.

[DanaB27]

If you are using TurboTax Desktop, the "Review your 1099-R info" screen is called "Your 1099-R Entries" screen. Did you enter any Form 1099-Rs? If not then you will just start in the retirement section and go through the questions until you get the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen.

1. Click "Federal Taxes" on the top and select "Wages & Income"
2. Click "I'll choose what to work on"
3. Scroll down and click "Update/Start" next to "IRA, 401(k), Pension Plan (1099-R)"
4. Continue through the questions until you get the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD"

[VolvoGirl]

Why did you get the 1099Rs?   What are your ages?  What code is in box 7?   

I would delete the 1099R and enter it again manually.  That usually fixes it and resets the questions.